Bitcoin : Weekly Analysis
Crypto market has a downward trend from June and ongoing but the institutional interest has not decline at all. Specifically, CME Group reports that Bitcoin futures had a 61 % increase year over year in Q3.
Moreover, Grayscale (a digital asset management firm) reports that the total investment on its crypto products in Q3 2019 was $ 254 million, which 84 % came from institutional investors.
Those were the positive news of the week in contrast with Facebook departures from Libra project and Telegram’s legal problems with its ICO, caused from SEC.
In technical analysis, the range between $ 7.700 and $ 8.700, Bitcoin scratches the bottom of $ 7.700/ After several failed attempts from investors to break that range, there is a stability and a downward resistance on $ 7.700.
If this resistance broke, then the fall will be much harder until it reaches $ 5.500, a price that reflects a 78.6 % Fibonacci retracement from the last high. The moving averages and RSI index are on negative areas, a fact that make us pessimistic for the near future.
We believe that the price will remain steady around $ 7.700 as many investors will hold their positions and support the price at this level. The next days will be crucial for a downward move, offering a huge chance for cheap buys.